International Tourism Report

UNDERSTANDING THE INTERNATIONAL TOURIST: OPINION & DATA

Looking beyond summer to fulfil latent longing for travel Eva Aranda (Ipsos) Sonia Huerta (Mabrian), Miguel Sanz (Turespaña) June 2021 LET’S NOT WRITE OFF 2021 YET More than half of residents in 3 countries plan to travel in 2021

When will you feel ready to book travel/vacations in 2021? Total

Italy 14% 34% 14% 62%

Spain 16% 26% 16% 58%

France 15% 27% 9% 51%

Great Britain 16% 20% 12% 48%

Germany 12% 24% 12% 48%

I already am In the next 3 months In the next 4-6 months

Source: Ipsos Essentials. Wave 42. 3-6 Junio 2021. Data from Germany, Great Britain, France, Italy and Spain. Q: For the following activitity (book a holiday in 2021), when do you think you Will be ready to do it? Base: 2,688

2 ‒ © Ipsos | International Tourism SIX MONTHS OF OPPORTUNITY Germans and British waiting to be able to travel, not giving up on their trip abroad

Total of searches for domestic flights 32 8 7 22 33 2021 (millions) (+11) (+2) n.d (+7) (+16)

Change vs. 2019 % plan to go on holiday in the next 3 months 73% 72% 70%

50% 42% 37% 37%

24% 19% 19% 21% 13% 13% 13% 13% 10% 11% 11% 12% 10%

Spain Germany Great Britain France Italy Domestic International Not sure I won't travel

Source: Ipsos Essentials. Wave 42. 3-6 Junio 2021. Data from Germany, Great Britain, France, Italy and Spain. Q: Are you planning to spend an overnight vacation away from your home in any of the following places in the next three months? Select all that apply. Base: 4,998 Mabrian: Domestic flight searches made between March and June, to travel between June and September 2021; compared to the same time in 2019.

3 ‒ © Ipsos | International Tourism A TREND ALREADY SEEN IN TOURISTS TO SPAIN

Who will holiday in Spain during the traditional months vs. delay their trips abroad

In which month/s do you expect to travel In which month/s do you expect to travel within Spain? (Multiple) abroad? (Multiple)

June 16% June 6% 18 July 32% July % 25 August 43% August % 27 September 30% September % October 12% October 21% November 6% November 15% December 5% December 9%

Base: Viajarán a España en 2021 (573) Base: Viajarán al extranjero en 2021 (114)

Source: Ipsos National tourism study: 4-7 June 2021. Q4: In which month/months will you travel within Spain?/ Q5.- In which month/s do you plan to travel outside of Spain?

4 ‒ © Ipsos | International Tourism SPAIN IS THE PREFERRED DESTINATION FOR OUR KEY COUNTRIES IN THE SHORT TERM

Italy is ranked second, well behind Spain (10 points)

Top 10 international destinations among those who plan to take vacations in the next 3 months (Germany, England, Italy and France)

Spain 25% Italy 15% France 12% Greece 11% Austria 8% Portugal 7% Turkey 6% Great Britain 5% USA 5% Croatia 4%

5 ‒ © Ipsos | International Tourism LOOKING AT THE NUMBER OF FLIGHT SEARCHES, SPAIN MAINTAINS A COMPETITIVE POSITION

Including in countries where people could travel by car

Number of searches in 2021 for Spain vs. others (number of searches for flights per million) and change vs. 2019 Effect of Turkish population in Germany Effect of Portuguese population in France +10 - 8 29% Traditional 28% +2 destination of +11 +7 Britons, supported 24% - 2 +5 +5 22% by temporary +4 20% green light 17% 18% 15% 17% +2 - 4 +1 +2 10% = 9% 9% - 2 8% 6% - 1 5% 3%

Germany Great Britain France Italy Spain Turkey Portugal Greece

Source: Mabrian Number of flight searches for Spain and competitors made between March and June 2021 for travel between the months of July and September 2021; compared to the same period in 2019.

6 ‒ © Ipsos | International Tourism CONSISTENT LEVELS OF INTEREST IN TRAVELLING TO SPAIN THIS SUMMER (FLIGHT SEARCHES)

Stagnated interest/demand from Britain, “staycation” trend Top 10 countries weighted (%) for demand (flight searches to Spain)

Spain 22% 15%

Germany 13% 11%

Great Britain 9% 22%

USA 8% 6%

France 8% 6%

Portugal 7% 7%

Italy 7% 7%

Russia 3% 2%

China 3% 7%

Belgium 3% 1% Jul-Sept 2021 Jul-Sept 2019

Source: Mabrian Number of flight searches for Spain and competitors made between March and June 2021 for travel between the months of July and September 2021; compared to the same period in 2019.

7 ‒ © Ipsos | International Tourism HOWEVER, THE NUMBER OF FLIGHT SEARCHES TO SPAIN FROM KEY COUNTRIES OF ORIGIN IS TRAILING 2019 LEVELS

Travel desire for the summer period is an average of 27% below that of 2019

Travel desire/demand (total flight searches for travel to Spain)

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

- Spain Germany Great Britain France Italy

Jul-Sept 2021 Jul-Sept 2019

Source: Mabrian Number of flight searches for Spain and competitors made between March and June 2021 for travel between the months of July and September 2021; compared to the same period in 2019.

8 ‒ © Ipsos | International Tourism SIGNIFICANT INCREASE IN THE AVERAGE LENGTH OF STAY WHEN LOOKING AT FLIGHTS TO SPAIN

Average expected length of stay 2021 (days) and increase vs. 2019

The average length of stay for those travelling by plane has increased considerably in all countries

Source: Mabrian Number of flight searches for travel to Spain made between March and June 2021 to fly between the months of July and September 2021; compared to the same period in 2019. Average length of stay calculated from flight searches between selected dates.

9 ‒ © Ipsos | International Tourism THE TOP 10 MOST SEARCHED DESTINATIONS IS UNCHANGED, BUT THE BALEARIC ISLANDS IMPROVE THEIR POSITION IN THE RANKING

Top 10 national destinations sparking greatest interest (flight searches) from Germany, England, Italy and France)

2019 2021

1 1 Barcelona 3 2 Mallorca 2 3 Madrid 6 4 Ibiza 4 5 Malaga 7 6 Alicante 8 7 Valencia 5 8 Tenerife 9 9 Gran Canaria 10 10 Menorca

Source: Mabrian Number of flight searches for Spanish destinations made between March and June 2021 to fly between the months of July and September 2021; compared to the same period in 2019. Average length of stay calculated from flight searches between selected dates.

10 ‒ © Ipsos | International Tourism THE ISLANDS RETURN TO THE TOP 10 DESTINATIONS IN DEMAND

Largely due to the “affluent effect”

Destinations most in demand for Spaniards

Summer 2021 Summer 2020

Andalucía 31 Andalucía 26 C. Valenciana 18 Cataluña 11 Canarias 12 C. Valenciana 10 Castilla-León 11 Castilla y León 8 Madrid 11 Galicia 8 Cataluña 11 Asturias 6 Galicia 10 Cantabria 5 Asturias 9 Aragón 4 Baleares 8 País Vasco 4 Cantabria 8 Madrid 4 Base: Intención de viajar a España (792)

Source: Ipsos National tourism study: 4-7 June 2021. Q9.- Which destination/s within Spain have you decided on or are you considering for your vacation? Select all that you are Thinking of visiting this year. Bear in mind that we are referring to trips of more tan 3 nights away from your usual place of resience of homes of friends/family. Q9a – Which island/s are you thinking of visiting/planning to visit?

11 ‒ © Ipsos | International Tourism GETTING ON A PLANE, AND BORDER RESTRICTIONS, CAN BE A DEAL- BREAKER FOR INTERNATIONAL TRAVEL

Countries accessible by road are key short-term

% Do not feel comfortable doing these activities during 2021

65% 74% Spain International air travel 72% Germany 69% 62% Great Britain

51% France 71% Italy Domestic air travel 69% 62% 49%

Source: Ipsos Essentials. Wave 42. 3-6 Junio 2021. Data from Germany, Great Britain, France, Italy and Spain. Q: For the following activities (…) when do you feel comfortable doing them?. Base: 2,688

12 ‒ © Ipsos | International Tourism AVAILABILITY AND OWN TRANSPORT ARE KEY FACTORS SHAPING DESTINATION CHOICES FOR SPANIARDS

For 21% of “affluent” travellers, PCR tests affect their choice.

Key factors in choosing a destination

It isn't available 43%

I can go by car 40%

Covid stats under control 26% Destination has safe anti-Covid 18% measures

Doesn't require PCR or antibody test 15% (21% Affluent)

Speed of vaccination 14%

No restrictions to activities 8%

Source: Ipsos national tourism survey: 4-7 June 2021. Base: Intention to travel to Spain in 2021 (Affluent 311. Total 792) Q14.- Which factors will influence/have influenced your destination choice?

13 ‒ © Ipsos | International Tourism PERCEPTIONS OF SAFETY IN HOTELS AND APARTMENTS ARE EQUAL

% feel comfortable with these activities in 2021

87% 82% Eat outisde 81% 84% Spain 88% 76% Germany 72% Eat inside a restaurant 76% 77% 79% Great Britain 62% 50% France Stay in a hotel 56% 60% 67% Italy 57% 52% Stay in an apartment 54% 61% 63%

Eating outside is an important element to stress in marketing activities

% feel comfortable with these activities in 2021

87% 82% Eating outside 81% 84% Spain 88% 76% Germany 72% Eating inside a restaurant 76% 77% 79% Great Britain 62% 50% France Staying in a hotel 56% 60% 67% Italy 57% 52% Staying in an apartment 54% 61% 63%

Taking anti-Covid measures on vacation: group bubbles and fresh air.

% ‘agree’ (Scale: 1 – strongly disagree / 4 strongly agree)

Look for more personalised experiences with my "bubble" TOTAL 75%

Enjoy more outdoor sport and activities 61%

Spend more time on terraces 52%

Eat out more than before the pandemic 30%

Go out for drinks more 19%

Splash out 10%

Source: Ipsos Essentials. Wave 42. 3-6 Junio 2021. Data from Germany, Great Britain, France, Italy and Spain. Q15.- To what extent do each of these phrases describe your attitude towards your next holiday in Spain? Base: Intention to travel to Spain 2021 (792)

And 42% will spend more than last year

Will you spend more, the same or less on a trip Will you spend more, the same or less on to Spain than before the pandemic? a trip to Spain than 2020?

8% 19% 30% Less Less 42% Same Same More More 61% 40%

Base: Viajarán a España en 2021 (573) Base: Viajarán al extranjero en 2021 (114)

Source: Ipsos National Tourism study 4-7 June 2021. Q10.- Would you say that you are prepared to spend on your trip to Spain; less, the same, or more tan you spent Before the pandemic? / Q11 – And in comparison to last year (2020), would you say that you will spend less, the same, or more when travelling Spain in comparison to 2020?

13% are waiting to be vaccinated before going on holiday

13% 19% 14%

of Spaniards with no intention to of Spaniards will not travel of Spaniards will not travel travel are waiting for the for fear of infection for fear their family will be vaccine infected

Source: Ipsos National Tourism study 4-7 June 2021. Q16.- Why will you not travel within Spain tihs year? Base: Will not travel to Spain (243)

18 ‒ © Ipsos | International Tourism THOSE WHO ARE YOUNGER, AND MORE WEALTHY ARE MORE LIKELY THAN AVERAGE TO TRAVEL INTERNATIONALLY

Families and those who have been vaccinated also show greater intention to travel, compared to average Plan to take an international vacation in the next 3 months

61% 61% 57% 58% 54% 50% 51% 45% 46% 46% 39%

Families GenGen ZZ MillennialsMillennials Gen X Boomers LowBaja MiddleMedia HighAlta Familias con SinNo hijos kids en at el Vacunado No vacunadoNot with kids Vaccinated (under(Menos 24) de (24(24 to to 38) 38) (39 to 55) (56 to 74) income income income hijos en el homehogar vaccinated 24) athogar home

Source: Ipsos Essentials. Wave 42. 3-6 Junio 2021. All countries. Q: Are you planning to spend an overnight vacation away from your home in any of the following places in the next three months? Select all that apply. 19 ‒ © Ipsos | International Tourism 5 KEY LEARNINGS

Let’s not write off 2021. There is a high latent demand, while people wait for vaccination or for the health situation to improve. 2021 tourism moves extends beyond the summer timeframe and there is a lot of intention 1 to travel outside of the season.

Facilitate tourist activities (PCRs and quarantines) for outbound travel and when returning to the country of 2 origin.

3 Fight against uncertainty through clear messaging and try to ease feelings of insecurity, i.e. when flying.

Micro-segmentation: It is important to communicate clearly and frequently to those with the highest intention 4 to travel.

5 Highlight clearly the strong offer of fresh air, outdoor dining and good weather.

METHODOLOGY & SAMPLE METHODS USED

International survey Survey in Spain Big data

Method: Online survey through Ipsos Method: Online survey through Ipsos Data and transactions: online panel. Essentials monthly online panel. • Searches for flights survey. Wave 42. Fieldwork dates: 4 - 7 June 2021 • Airline capacity Fieldwork dates: 3 - 6 June 2021 Dates: Sample: 1,035 adults surveyed (18 Sample: 14,500 adults aged 18 to years old and over). National • Searches carried out between 1 March 74 years in Canada and the US and residents. Ceuta and Melilla not and 14 June 2021 for travel between 1 from 16 to 74 years in 14 countries: included. July and 30 September. Australia, Brazil, China, France, • Direct capacity for travel between 1 Error (±3,05%) Germany, Italy, Spain, India, Japan, July and 30 September. Mexico, Russia, South Africa, South Korea and Great Britain. Countries: Spain, UK, Germany, Italy and France Error (±0,81%)

Vicente Castellanos Eva Aranda Director Director Ipsos Spain Public Affairs Ipsos Spain SIA [email protected] [email protected]